In today's DeFi landscape, DAOs and others managing onchain treasuries are constantly seeking ways to achieve risk-managed yield. Aera, a treasury management protocol, addresses this need by offering a fully automated, non-custodial treasury solution designed to optimize passive yield, automate operations, grow liquidity, and more.

Protocols continually seek innovative solutions to enhance liquidity and optimize treasury management. Building on our recent blog post covering how Liquidity Mining and Protocol-Owned Liquidity (POL) can drive long-term protocol growth, today we explore how these strategies can be executed through Aera.

Exploring the importance of onchain liquidity for protocol growth and discussing the mechanics, benefits, and challenges of both POL and Liquidity Mining.

Among the various strategies available on Aera, low-liquidity asset diversification is notable for its ability to diversify a treasury’s assets with minimal slippage and price impact. In an environment characterized by dynamic market shifts and the burgeoning prominence of DeFi treasuries, thoughtful and deliberate treasury management becomes increasingly crucial, particularly for low-liquidity assets.

Recently, Aera was engaged to produce a research report for Arbitrum's Treasury and Sustainability Working Group, with the goal of better understanding the price impact and efficiency of grant distributions. This blog post reviews some of the insights from the report related to grant funding efficiency.

Today, the Aera protocol enters our general availability phase and shares news of our $8 million token sale. We’ve been hard at work for the past year piloting the protocol with some of DeFi’s leading DAOs and adding essential features to make autonomous onchain treasury management completely seamless. Here’s where we’re at today:

Throughout the development of DeFi lending protocols, the best way to manage protocol funds for sustainable growth and risk coverage has been a major open question. As a customizable optimization platform, Aera offers a compelling solution for the treasury management needs of DAOs. Primarily, lending protocols need to provide coverage for insolvencies (loan losses) that may be realized in market shocks. 

On October 19, 2022, Aera hosted a live Q\&A event to introduce the new protocol. This post is an abridged transcript of questions from that event, answered by Tarun Chitra and Shaan Varia of Gauntlet with Peteris Erins from Auditless.

Aera was created as a platform for efficient risk management and hedging with a wide range of applications. Though the initial version of the protocol is most applicable to lending treasury management, there are prospective use cases in many areas involving complex trade-offs. This article explains how to use Aera and why protocols like Aera are an important next step in developing financial applications on blockchains.